“An increasing number of China’s wealthiest individuals are participating in the country’s biggest annual political event, underscoring the country’s close ties between politics and business.” Andy Xie shares his insights in a CNBC interview on the close ties between politics and business in China.
More than 200 wealthy Chinese are delegates to two major political meetings this year, several media outlets reported this week, up from 155 last year. Among them are 36 billionaires, including Li Hejun, who was recently ranked the country’s richest man by Shanghai-based wealth tracker Hurun.
China’s parliament, the National People’s Congress (NPC), and its advisory body, the Chinese People’s Political Consultative Conference (CPPCC), both kick off their annual sessions this week and are closely followed by global markets for future direction on the world’s number two economy.
“A lot of the rich in China have gotten their wealth from property, which is really about politics. That’s why they are very eager to be part of political parties like the NPC and CPPCC,” said independent economist and long-term China watcher Andy Xie.
In the past, political connections in China’s corporate world were synonymous with crony capitalism, but President Xi Jinping’s two-year old corruption crackdown is increasingly changing the nature of the relationship.
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Dr Andy Xie 謝國忠, Shanghai-based independent economist, has just been named “ 50 Most Influential Persons in Finance”by Bloomberg, and is currently director of Rosetta Stone Advisors.Dr Xie is one of the few economists who has accurately predicted economic bubbles including the 1997 Asian Financial Crisis and the more recent subprime meltdown in the United States. He joined Morgan Stanley in 1997 and was Managing Director and Head of the firm’s Asia/Pacific economics team until 2006. Prior to that he spent two years with Macquarie Bank in Singapore, where he was an associate director in corporate finance. He also spent five years as an economist with the World Bank.
Dr Xie earned a PhD in economics in 1990 and an MS in civil engineering in 1987 from the Massachusetts Institute of Technology.